REACH

What is REACh?

REACh is the Registration,
Evaluation, Authorization and Restriction of Chemicals in a country or region. This refers to a process where different
manufacturers of a chemical substance coordinate to generate detailed data to
ensure that the impact on people and the environment are well understood. Substances
are registered by volume, with testing requirements going up as the volumes
increase. The REACh model places responsibility on the industry to manage the
risks that chemicals may pose to health and the environment, and requires both
suppliers and downstream users to share responsibility for REACh
compliance. Costs are shared by manufacturers, with only manufacturers
that contribute to a registration gaining license to manufacture or import a
substance. This approach is in contrast to the National Inventory model used by
the United States and others, in which a new substance needs to be registered
and approved by the government agency only once and in general, can be used by
anyone.

REACh applies to all chemical substances, including those
used in consumer products such as in personal care, laundry, hard surface
cleaning and paints. Since the individual substances are registered, mixtures
and blends of substances do not require additional registration.

Once registered, substances continue to be assessed for
safety and environmental impact by the REACh regulatory body. If it is determined to
be a Substance of Very High Concern (SVHC) because of its human health or
environmental hazard profile, it is given a sunset date after which it will be
banned at any volume.

Substances manufactured outside of the country or region often can be registered through a third party known as an Only Representative. This
third party serves as the legal entity, enabling the manufacturer to grant
others the right to use and import the substance. These licenses are unique to
each customer, requiring the customer to report the volume of the imports for
tracking. Products that are not in compliance with REACh cannot be legally sold.

Where is REACh?

REACh began in the European Union (EU) and went into effect in 2008. Europe
has taken a phased approach due to the time and expense involved with
registering each new substance, focusing on high-volume materials first. By May 2018, all materials with volumes >1
metric ton need to be registered to be in compliance with the law. After this
deadline, materials will need to be registered before the substance can be
manufactured in or imported to Europe. Although it is an EU regulation, it does
have global impact as it affects all globally-produced substances that are
imported into the European Economic Area (EEA) that unites the EU member countries.

The REACh approach is catching on. China, Korea and Turkey
have all adopted REACh-like legislation, with others set to follow. Each
country or region has its own criteria for evaluating the safety of a
substance, based on its unique environment and health standards. Experts
believe that this trend will continue as new regulatory regimes are implemented
globally.

Unfortunately, since the needs of each country or region are
different, there is not yet a set of standards that can be used to “globally
register” a substance. In some cases, a registration in one region may benefit a
registration in another, but this must be evaluated on a case-by-case basis.

Our Commitment

Stepan Company is committed to registering products in partnership
with our customers and enabling the use of chemistry in a safe, responsible and
sustainable way. As a Responsible Care company, we ensure that our products are
manufactured in accordance with best practices that reduce risk to human health
and the environment.

Stepan Company will register products and substances for use by our customers in REACh territories, wherever possible, and will support
registrations of substances by customers where appropriate. All products made
within REACh regions have been registered in accordance with the law. Where
possible, Stepan has pre-registered all products manufactured outside of REACH
regions, which will enable import into Europe up to the deadline for full
registration in May 2018.

We actively monitor legislation in all regions to develop an
understanding of the unique safety and regulatory requirements of each. We seek
to actively engage with our supply chain partners to identify new opportunities
for the use of our products around the globe.

Our Global Partners

Stepan has partnered with REACHLaw to manage registrations
in Europe for non-EU products and to serve as our Only Representative. Volumes
of substances are reported through our Only Representative and kept in
confidence for the protection of our customers. REACHLaw is located in Espoo,
Finland, near the European Chemicals Agency (ECHA) headquarters.

Stepan has partnered with REACH24H, to manage
registrations in the Asia Pacific region and to serve as an Only Representative
where possible. Based out of Hangzhou, China, Reach24H has offices throughout
the region and in the United States, and are experts in managing the growing
complexity of compliance legislation.

Contact Us

To find out more about REACh and the registration status of our products, please contact your Stepan sales representative or at the following point of contact:

For Non-EU Customers:Stepan North America Technical Service DepartmentPhone: 1-800-745-7837Email: techserv@stepan.com

For Europe, please visit the European Chemical Agency. There you will find detailed information on the requirements of the European Economic Area and can look up a substance to see if it is registered. You can also refer to our partners at REACHLaw.